Introduction To Finance

This course will touch on macro and micro economic issues such as; foreign exchange, global wages and geo political risks. The finance topics will cover areas such as cost of funds, cash flows and financial modeling.

This is a project-based course and each week’s lesson will be a part of the financial project.

Final project is to start a business that involves either the import or export of goods or services. Examples; setting up an offshore call center to sell insurance. Buying raw material from a foreign source or exporting finished goods. This course will touch on macro and micro economic issues such as; foreign exchange, global wages and geo political risks. The finance topics will cover areas such as cost of funds, cash flows and financial modeling.

 
Week 1
 
By the end of week 1 you should understand the following:
Overview of interest rates
Prime rates / Libor
Overview of Foreign exchange markets.
Role of Central banks in an economy

Reading assignment:

http://useconomy.about.com/od/glossary/g/prime_interest.htm
http://www.bankrate.com/rates/interest-rates/1-year-libor.aspx
http://www.traderji.com/forex/4386-forex-what-how-does-work.html
http://www.articlesbase.com/currency-trading-articles/how-does-forex-currency-trading-work-273831.html
Response to discussion questions must be posted by Tuesday 1200 GMT and at least 2 follow up postings to a students post must be done by 1200 GMT Thursday.

1) Why do countries have currencies with different values to each other?
2) How does a nation gain and / or lose when the value of their currency fluctuates?
3) How can government actions (central banks) affect the value of their currency and why do they do so?
4) How does a currency trader make and lose money?
Hint: you may have to do some additional research. Please cite all your research.
By the end of week 1 you must submit your business plan proposal ( 1 paragraph) for approval. The business plan can be any good or service that involves some sort of cross border dealings. Think of a business plan you
 
always wanted to explore further and add to the idea a function that must involve dealing in a foreign country. If you are stuck, please contact me.
 
 
Week 2
 
By the end of week 2, you should learn to calculate interest rates and be able to read , understand and build an income statement. 
Instructions for posting:
Go to course material for week 2 and post your discussion answers in the comments section. You should use this function when responding to students posts as well. 
Reading assignment:
 
http://bizfinance.about.com/od/debtandequity/bb/interest_rates.htm
http://www.myamortizationchart.com/
http://www.businesstown.com/accounting/projections-statements.asp
 
Week 3
 
Review balance sheets statement of cash flows and retained earnings.
Post discussion about questions from reading and answer at least 2 other students
 
 
Reading assignment:
 
 
http://www2.owen.vanderbilt.edu/Germain.Boer/entrepreneur/proforma%20financials/proforma.html
http://www.scribd.com/doc/13034086/General-Motors-10K-2008
 
Week 4
 
Work on executive summary for your business plan
Identify suppliers, customers and risks involved
Post on discussion and give feed back to at least 2 other students
 
http://scm.ncsu.edu/public/cpfr/

 
Week 5
 
How to create a supply chain including suppliers, & customers. Discuss Forex hedging to mitigate risk of currency swings.
 
Discuss methods on discussion
 
Reading assignment
 
http://www.lariba.com/knowledge-center/articles/pdf/Malaysia%20-%20GOLD%...
http://ezinearticles.com/?Why-Hedge-Foreign-Currency-Risk?&id=33036
http://www.finpipe.com/hedge.htm
 
Week 6
Post final project to discussion board
 
Divide class into small groups and have them give feedback to each other’s business proposals.